Commonwealth Consolidated Regulations

CORPORATIONS REGULATIONS 2001 - REG 7.6.01

(1) For paragraph 911A(2)(k) of the Act, the provision of the
following services is covered by an exemption from the requirement to hold an
Australian financial services licence:

(a) dealing in a financial product by a person in the capacity of the
trustee of a superannuation entity (other than the trustee of a public offer
entity);

(b) dealing in a financial product by a person in the capacity of the
trustee of a pooled superannuation trust in the following circumstances:

(i) the pooled superannuation trust is used for investment of the assets
of a regulated superannuation fund;

(ii) the regulated superannuation fund has net assets of at least $10
million on the date that it first invests in the pooled superannuation trust;

(c) dealing in a financial product by a person in the capacity of the
trustee of a pooled superannuation trust in the following circumstances:

(i) the pooled superannuation trust is used for investment of the assets
of a regulated superannuation fund;

(ii) the regulated superannuation fund has net assets of at least $5
million, but less than $10 million, on the date that it first invests in the
pooled superannuation trust (whether that date is before or after the FSR
commencement);

(iii) the trustee has a reasonable expectation that the net assets of
the regulated superannuation fund will equal or exceed $10 million not later
than 3 months of the date on which it first invests in the pooled
superannuation trust (whether that date is before or after the FSR
commencement);

(d) dealing in a financial product by a person in the capacity of the
trustee of a pooled superannuation trust in circumstances in which the pooled
superannuation trust is not used for the investment of the assets of a
regulated superannuation fund;

(e) a financial service provided by a person ( person 1 ) in the
following circumstances:

(i) the service consists only of:

(A) informing a person ( person 2 ) that a financial services licensee,
or a representative of the financial services licensee, is able to provide a
particular financial service, or a class of financial services; and

(ii) person 1 is not a representative of the financial service licensee,
or of a related body corporate of the financial services licensee ;

(iii) person 1 discloses to person 2, when the service is provided:

(A) any benefits (including commission) that person 1, or an associate
of person 1, may receive in respect of the service; and

(B) any benefits (including commission) that person 1, or an associate
of person 1, may receive that are attributable to the service;

(iv) the disclosure mentioned in subparagraph (iii) is provided in
the same form as the information mentioned in subparagraph (i);

(ea) a financial service provided by a person ( person 1 ) in the
following circumstances:

(i) the service consists only of:

(A) informing a person ( person 2 )
that a financial services licensee , or a representative of the financial
services licensee, is able to provide a particular financial service, or a
class of financial services; and

(ii) person 1 is a representative of the financial service licensee, or
of a related body corporate of the financial services licensee;

(f) a financial service provided in the following circumstances:

(i) a person ( person 1 ) is a person that is not in the jurisdiction;

(ii) person 1 arranges, on behalf of another person ( person 2 ), for a
holder of an Australian financial services licence to deal in a financial
product;

(iii) person 1 believes on reasonable grounds that person 2 is not in
the jurisdiction;

(fa) a financial service is provided in the following circumstances:

(i) a person ( person 1 ) is a person that is not in the jurisdiction;

(ii) person 1 enters into an arrangement with the holder of an
Australian financial services licence under which a financial product, or a
beneficial interest in a financial product, is to be held on trust for, or on
behalf of, another person ( person 2 );

(iii) person 1 believes on reasonable grounds that person 2 is not in
the jurisdiction;

(g) a financial service provided in the following circumstances:

(i) a person ( person 1 ) is a person that is not in the jurisdiction;

(ii) person 1 believes on reasonable grounds that another person (
person 2 ) is not in the jurisdiction;

(iii) person 1 deals on behalf of person 2 in a financial product that
cannot be traded on a licensed market;

(iv) person 1 believes on reasonable grounds that each person who is a
party to the dealing or any transaction to which the dealing relates is a
person that is not in the jurisdiction;

(h) a dealing in a financial product that consists only of an employer
sponsor paying contributions on behalf of an employee into a superannuation
product or RSA product;

(ha) a dealing in a financial product that consists only of a trustee of
a superannuation fund paying the benefits of a member into a superannuation
product or RSA product;

(hb) a dealing in a financial product that consists only of an RSA
provider paying the benefits of an RSA product holder into a superannuation
product or RSA product;

(hc) a dealing in a financial product that consists only of an
employer-sponsor arranging for the issue of a superannuation product to an
employee;

(k) a financial service provided in the following circumstances:

(i) the financial service is provided in respect of a financial product
by a person (who may be described as a 'sub-custodian') under an arrangement
with a financial services licensee (the master-custodian );

(ii) the master-custodian is authorised by its Australian financial
services licence to provide a custodial or depository service;

(iii) a beneficial interest in the financial product is held by the
master-custodian on trust for or on behalf of a client as part of providing a
custodial or depository service authorised by its Australian financial
services licence;

(l) a financial service provided by a person ( person 1 ) in the
following circumstances:

(i) the financial service is provided to another person ( person 2 ) in
the ordinary course of person 1's business;

(ii) person 1 does not provide financial services as a significant part
of person 1's business;

(iii) the financial service consists only of either or both of:

(A) advising person 2 in relation to a non-cash payments facility that
person 2 may use or has used to pay person 1 for goods or services; and

(B) arranging to deal in a non-cash payments facility that person 2 will
use to pay person 1 for goods or services;

(iv) the goods and services do not include any financial products or
financial services;

Example:

A retailer might offer its customers a variety of payment methods for payment
for goods and services, such as a credit card, Bpay, or direct debit.

A recommendation of a particular payment method, or the expression of an
opinion about the payment methods available to the customer, should not
require an Australian financial services licence.

(la) a financial service provided by a person ( person 1 ) to another
person ( person 2 ), if:

(i) the financial service is provided in the ordinary course of person
1's business; and

(ii) person 1:

(A) holds an Australian financial services licence authorising the
provision of financial services other than the financial service mentioned in
subparagraph (i); or

(B) does not hold an Australian financial services licence; and

(iii) the financial service consists of either or both of the following:

(A) advising person 2 in relation to a non-cash payments facility that
person 2 may use, or has used, to pay person 1 for a financial product or a
financial service;

(B) arranging to deal in a non-cash payments facility that person 2 will
use to pay person 1 for a financial product or a financial service;

(lb) a financial service that is the issue of a non-cash payment
facility if:

(i) it is a facility for making non-cash payments; and

(ii) under the facility, payments may be made only to the issuer of the
facility or a related body corporate of the issuer;

(lc) an Australia Post presentment and payment processing facility known
as POSTbillpay or billmanager;

(m) a financial service provided by a person in the following
circumstances:

(i) the service consists only of either or both of:

(A) dealing in derivatives; and

(B) dealing in foreign exchange contracts;

(ii) the service does not involve the making of a market for derivatives
or foreign exchange contracts;

(iii) the dealing is entered into for the purpose of managing a
financial risk that arises in the ordinary course of a business;

(iv) the person does not deal in derivatives or foreign exchange
contracts as a significant part of the person's business;

(ii) the service does not involve the making of a market for those
derivatives, units or foreign exchange contracts;

(iii) the dealing is entered into for the purpose of managing financial
risk in relation to the surrender, cancellation or relinquishment of carbon
units, Australian carbon credit units or eligible international emissions
units by:

(iv) the person does not deal in those derivatives, units or foreign
exchange contracts as the principal activity of the person's business;

(v) the dealing is entered into:

(A) on the person's own behalf; or

(B) on behalf of a related body corporate of the person; or

(C) on behalf of an associated entity of the person;

(mb) a financial service that a person is engaged by the Clean Energy
Regulator to provide to the Clean Energy Regulator, or on behalf of the Clean
Energy Regulator, that relates to the conduct of an auction of carbon units
under the Clean Energy Act 2011, other than a financial service that arises
in the course of the following activities:

(ii) direct participation in an auction under the Clean Energy Act 2011, whether on the person's own behalf or on behalf of a person other than the
Clean Energy Regulator;

(n) a financial service provided by a person ( person 1 ) to another
person ( person 2 ) in the following circumstances:

(i) person 1 is not in this jurisdiction;

(ii) person 2 is in this jurisdiction;

(iii) the service consists only of dealing in a financial product or
class of financial products;

(iv) a financial services licensee whose financial services licence
covers the provision of the service arranges for person 1 to provide the
service to person 2;

(na) a financial service provided by a person ( person 1 ) to another
person ( person 2 ) in the following circumstances:

(i) person 1 is not in this jurisdiction;

(ii) person 2 is in this jurisdiction;

(iii) the service consists only of 1 or more of:

(A) the provision of financial product advice to person 2; and

(B) person 1 making a market; and

(C) the provision of a custodial or depositary service to person 2;

(iv) person 1 is:

(A) a related body corporate of a financial services licensee whose
financial services licence covers the provision of the service; or

(B) a party to a business joint venture with a financial services
licensee whose financial services licence covers the provision of the service;

(v) the financial services licensee arranges for person 1 to provide the
service;

(vi) the financial service licensee's licence is subject to a condition
requiring it to assume responsibility for the conduct of person 1 in the
provision of the financial service mentioned in this paragraph;

(o) a financial service that is the provision of financial product
advice in the following circumstances:

(i) the advice is only general advice in relation to a financial product
or class of financial products;

(ii) the advice is provided by the product issuer of the financial
product or class of financial products;

(iii) the advice is provided in the media;

(iv) the product issuer provides the following information:

(A) the advice has been prepared without taking account of the client's
objectives, financial situation or needs;

(B) for that reason, the client should, before acting on the advice,
consider the appropriateness of the advice, having regard to the client's
objectives, financial situation and needs;

(C) if the advice relates to the acquisition, or possible acquisition,
of a particular financial product, the client should obtain a Product
Disclosure Statement relating to the product and consider the Statement before
making any decision about whether to acquire the product;

(oa) the provision of financial product advice if the advice:

(i) is provided by an actuary in the ordinary course of providing
actuarial services; and

(ii) could not reasonably be expected to be included in a document that
is to be given to a retail client; and

(iii) is provided to:

(A) a wholesale client; or

(B) the Commonwealth, a State or a Territory; or

(C) an exempt public authority;

(p) a financial service provided by a person in the following
circumstances:

(i) the financial service relates to insurance entered into, or proposed
to be entered into, for the purposes of a law (including a law of a State or
Territory) that relates to workers compensation;

(ii) the person is licensed to provide the service under the law of the
State or Territory in which the service is provided;

Note: A licensed insurer
would require an Australian financial services licence to the extent that the
licensed insurer provides a financial service in respect of a non-workers
compensation product or a non-workers compensation component of a product.

(pa) a financial service provided to a wholesale client by a body that:

(i) is not a company; and

(ii) is established or constituted under a law of the Commonwealth or a
State or Territory; and

(iii) is required under a law of the Commonwealth or a State or
Territory to carry on the business of insurance or to undertake liability
under a contract of insurance; and

(iv) is regulated for the provision of insurance under a law of the
Commonwealth or a State or Territory;

(q) a financial service provided by a person in the following
circumstances:

(i) the financial service consists only of the variation or disposal of
a financial product by the person;

(ii) the person also issued the original product;

(iii) the person provides the financial service under the terms of the
financial product;

(r) a financial service that is a dealing (or arranging for a dealing)
in:

(i) a debenture; or

(ii) a legal or equitable right or interest in a debenture; or

(iii) an option to acquire, by way of issue or transfer, a debenture or
a legal or equitable right or interest in a debenture;

by the issuer of the debenture, the legal or equitable right or interest or
the option;

(s) the provision of financial product advice if the advice:

(i) is provided to a financial services licensee; and

(ii) is only general advice in relation to a financial product or a
class of financial products; and

(iii) is advice that the financial services licensee is authorised to
provide; and

(u) a financial service provided by a person in the following
circumstances:

(i) the financial service is advice included in a document issued in
connection with a takeover bid or an offer of a financial product;

(ii) the advice is an opinion on matters other than financial products
and does not include advice on a financial product;

(iii) the document includes a statement that the person is not operating
under an Australian financial services licence when giving the advice;

(iv) the person discloses, in the document, the information mentioned in
paragraphs 947B(2)(d) and (e) of the Act;

Example: A geologist's report on a mining lease included in
a PDS.

(v) a financial service provided by a person (the nominee ) in the
following circumstances:

(i) the nominee holds a financial product or a beneficial interest in a
financial product on trust for or on behalf of a client of a financial
services licensee who is a participant in a licensed market (the participant
);

(ii) the financial product:

(A) was acquired on the licensed market by the participant on behalf of
the client; or

(B) is to be disposed of on the licensed market by the participant on
behalf of the client;

(iii) the participant is authorised by an Australian financial services
licence to provide a custodial or depository service;

(iv) the participant's licence is subject to a condition requiring it to
assume responsibility for the conduct of the nominee in relation to the
provision of a financial service mentioned in this paragraph;